Santa Clara agrees to proceed with 49er stadium plan

Published 4:00 am, Wednesday, January 16, 2008

Photo: Frederic Larson

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The proposed site in Santa Clara right next to Great America and the 49ers Headquarters. Owner of the 49ers John York stated at a press conference in Santa Clara that The San Francisco 49ers will abandon their namesake city and look to build a stadium in Santa Clara, after concluding that their plan to build a stadium and retail-housing complex at Candlestick Point will not work. The 49ers said Candlestick Point, where the team has played since 1971, cannot support a "new state-of-the-art NFL stadium and adjacent major mixed-use project." The decision to look at Santa Clara -- the team's headquarters and the site of their training facility -- came after "careful deliberation" and a year of study, the team said. "The team came to the conclusion that the (San Francisco) project would not have offered the optimal game day experience it is seeking to create for fans, and has therefore decided not to move forward with the public approval process at Candlestick Point," the 49ers said in a statement. 11/10/06
{Photographed by Frederic Larson} Ran on: 02-26-2007
This Santa Clara location is the proposed site of a 49ers stadium, but a strip belongs to San Francisco.
Ran on: 02-26-2007
This Santa Clara location is the proposed site of a 49ers stadium, but a strip belongs to San Francisco.
ALSO Ran on: 04-23-2007
The proposed site for a new 49ers stadium lies adjacent to Great America in Santa Clara.
Ran on: 06-20-2007
Kamala Harris
Ran on: 06-20-2007
Kamala Harris
ALSO Ran on: 06-20-2007 MANDATORY CREDIT FOR PHOTOGRAPHER AND SAN FRANCISCO CHRONICLE/NO SALES-MAGS OUT less

The proposed site in Santa Clara right next to Great America and the 49ers Headquarters. Owner of the 49ers John York stated at a press conference in Santa Clara that The San Francisco 49ers will abandon their ... more

Photo: Frederic Larson

Santa Clara agrees to proceed with 49er stadium plan

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The Santa Clara City Council on Tuesday authorized the city to begin negotiations with the San Francisco 49ers on building a stadium in the South Bay city.

"I'm ecstatic," Jed York, son of team owners John and Denise DeBartolo York, said after the 6-1 vote. "This is basically clearing the first hurdle."

Mayor Pat Mahan said the decision to move forward brought the city closer to fulfilling the dream of previous City Council members, including her father, of bringing a major sports franchise to Santa Clara.

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The vote came at the end of an hours-long meeting, shortly before 12:01 a.m. More than 65 people - many expressing opposite views - had addressed the City Council about the $916 million stadium project, which still faces major challenges.

The team wants to build the football stadium on city land that Great America uses for parking, and Cedar Fair, the company that owns the amusement park, indicated it would go along with a plan only in exchange for major financial concessions.

There is also a $51 million gap between what the city says it can pay and what the Niners would like it to contribute.

Several City Council members who voted to enter into negotiations say the stadium plan should ultimately be decided by voters, probably in June or November.

York told the council before its vote that those obstacles are surmountable.

"We are confident that we can bridge that gap and that we can overcome any challenges that the city of Santa Clara has raised," York said. "The most resounding message that I've heard is that Santa Clara residents want to see the stadium go forward."

York also said he supports the stadium proposal going before voters.

"No matter what the voters decide by the ballot, the 49ers will abide by the will of the people," York said.

City Manager Jennifer Sparacino had recommended moving forward with negotiations, while noting there are "many outstanding issues requiring resolution."

Backers see the stadium as a key addition to what they hope will become a destination entertainment district that includes Great America and the city's convention center.

Opponents of the deal say it would be a public subsidy for a private company that would largely create low-paying jobs and shortchange the city.

Dozens of supporters sporting Niner shirts, jackets and caps crowded into the chambers across from critics with buttons reading "No Stadium Subsidy."

The City Council is scheduled to consider placing an initiative on the ballot at its meeting Tuesday.

City officials put the total cost of the project at $916 million - $854 million to build a 68,000-seat stadium, plus $62 million to move an electricity substation at the site and build a garage for the stadium.

The Niners have asked the city to contribute $222 million.

A feasibility report on the project, drawn up by city staffers, says Santa Clara can come up with $136 million from money on hand and by taxing future development.

An additional $35 million would be raised through a hotel tax, for a total of $171 million - or $51 million less than what the team is asking.

That's "the absolute limit" the city can contribute, Sparacino said.

Although several council members expressed reservations about the stadium deal, Councilwoman Jamie McCleod was the lone vote against entering into negotiations. She pointed to $5 million in affordable housing funds the deal is expected to siphon and questioned whether a stadium would produce quality jobs for Santa Clara residents.

A city consultant predicts the stadium would create 515 jobs.

"There are other projects that could have a much higher return on our investment and have much higher salaries," McCleod said earlier. "These 515 jobs we're looking at creating pay an average of $33,000 a year, which is below the poverty line in our area. If we go forward creating those, we would be lacking foresight."

City officials estimate the stadium would generate about $19 million for the city's general fund over the 30-year life of the stadium lease but would cost its redevelopment agency $90 million.

The proposed hotel tax increase would effectively boost the levy for guests to 11.5 percent from the current 9.5 percent, which is still less than the 14 percent charged in San Francisco and lower than the expected level in San Jose. So far, the eight hotels that would be impacted have not objected.

One neighbor, however, is not so keen on the stadium idea.

Cedar Fair, the company that owns Great America, sent a letter to the City Council in December saying it opposed building a stadium on its main parking lot, which is on land leased from the city. That land is the Niners' first choice for a stadium site.

The team has said it would consider building the stadium on an adjacent parking lot that serves as Great America's overflow lot. Cedar Fair says if that happens, it wants unilateral control over stadium scheduling during Great America's season. It also wants all parking revenue from the property, including that from stadium events.

Great America would also close on all 49ers home dates, and Cedar Fair wants to be reimbursed for unearned revenue on those days.

The cost estimates in Santa Clara's feasibility study don't appear to include the expense of meeting Cedar Fair's demands.

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